Lagos State has emerged as Nigeria’s most indebted state with N1.22 trillion domestic debt and $1.17 billion external debt as the country’s total public debt rose to N159.28 trillion in Q4 2025.
Lagos State has emerged as the most indebted state in Nigeria, owing N1.22 trillion in domestic debt and $1.17 billion in external debt as of the fourth quarter of 2025, according to the National Bureau of Statistics. The NBS, in its Nigeria’s Q4 2025 domestic and external debt report released Monday, said the country’s total debt stock rose from N153.29 trillion in Q3 to N159.28 trillion in Q4, representing a 3.90 per cent increase on a quarter-on-quarter basis. The report showed that total external debt stood at N74.43 trillion, while domestic debt was put at N84.85 trillion during the period.
According to the report, the share of external debt in naira value accounted for 46.73 per cent of the total public debt stock, while domestic debt made up 53.27 per cent. Lagos retained its position as the most indebted state in the federation, underlining its heavy borrowing profile amid growing concerns over subnational debt sustainability. The NBS figures also reflect broader pressures on the nation’s fiscal position, with rising debt levels continuing to shape concerns around public finance management.
The latest data comes amid heightened scrutiny of Nigeria’s borrowing trajectory as federal and state governments grapple with funding gaps, infrastructure needs and economic pressures. Analysts say the debt profile underscores the importance of prudent fiscal management and stronger revenue mobilisation to curb rising obligations. While Lagos remains the largest debtor among the states, the NBS report also points to the broader challenge posed by the country’s expanding debt stock and the implications for economic stability.
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